Tag Archives: covenant not to compete

Noncompetition Agreements – Impediment to Employee Mobility and Innovation?

The Wall Street Journal, by Aruna Viswanatha, recently asked whether Noncompete Agreements Hobble Junior Employees. Spoiler alert — they do. According to the Journal: Noncompete agreements—common in computing and engineering jobs, where proprietary technology can be at stake—are spreading to other industries and stretching further down the corporate ladder. Labor-law experts say some employers appear … Continue Reading

Michigan Court Cuts Down Non-Compete Agreement

Abraham Lincoln once noted that if he had six hours to chop down a tree, he would spend the first four sharpening the axe. For employers, that sort of up-front attention to details is especially important when it comes to non-compete agreements. Otherwise, as a recent Michigan Court of Appeals illustrates, the only thing likely to … Continue Reading

Preventing an Employee From Working for a Competitor Unravels without an Enforceable Noncompete Agreement

A fantastic, but often overlooked movie is True Romance. The movie stars Christian Slater whose character, Clarence Worley, delivers the following line: If there’s one thing this last week has taught me, it’s better to have a gun and not need it than to need a gun and not have it. This line should also be … Continue Reading

My former employer can’t prevent me from working, right? Dissecting the Enforceability of a Noncompete Agreement

After an individual’s employment is terminated and that individual begins working for a competitor or starts his or her own business, a common question asked by both the individual and the former employer is whether a noncompete agreement can be used to restrict one’s post employment opportunities.     The short answer is … well, … Continue Reading

Proposed Legislation Introduced to Restrict the Enforceability of Noncompete Agreements

Under Michigan law, noncompetition agreements (sometimes referred to as covenants not to compete or restrictive covenants) are generally enforceable as long as the restriction is reasonable as to subject matter, geographical scope, and duration. But recently proposed legislation would significantly limit Michigan’s noncompete law, which is found in Michigan’s Antitrust Reform Act (MARA), MCL 445.771 … Continue Reading

What Happens When a Noncompete Agreement is Violated? A Blueprint for Noncompete Litigation

Employers commonly require employees to execute noncompetition agreements (also referred to as covenants not to compete or restrictive covenants). Under Michigan law (MCL 445.774a), such agreements will be enforceable if reasonable. In theory, an enforceable noncompete agreement generally places certain limitations on an employee’s ability to work for a competitor or to start a competitive venture business following … Continue Reading

Recent Michigan Court Decision Highlights Weak Link in Enforcing Non-compete Agreement

A recent Michigan Court of Appeals Opinion dealt a serious blow to the enforcement of noncompete agreements. The Opinion invalidated a common provision found in such agreements and it illustrates that courts will closely scrutinize noncompete agreements for any weak links that may limit or otherwise invalidate these agreements.   Overview of Non-compete Agreements Employers … Continue Reading
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